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    happyfhc's Avatar
    happyfhc Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 10, 2007, 10:38 AM
    Options when selling house with net loss?
    Hi All -

    We just received an offer for our home which will result in a net loss of 40K out of our pockets. My husband and I are getting divorced, I want to move closer to my work, I can't afford the house much longer, and I just want out. Our neighbors who own the Same house turned down two offers early on because they thought the offers were too low - and now their home is priced 80K less than when it first went up. I DON'T want to turn down an offer.

    We have never been late on a payment and have perfect credit. Is there anyway the bank will convert the remaining 40K to an unsecured loan?

    I just found out that I cannot write off the capital loss, I thought I could. Is that correct?

    Any advice would be greatly appreciated.

    Oh - I'm in California, if it matters... market stinks..

    Thanks!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Sep 10, 2007, 11:36 AM
    Talk to the bank about a short sale. In a short sale they will forgive the difference between the sale price and the balance on the mortgage. You then get a 1099 and have to pay taxes on that amount as income.

    If they won't do it, then you will have to work out something with them about getting a loan or whatever to pay off the balance.
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